Motorists will pay less at the pumps after world oil prices fell yesterday to their lowest level in three months as Hurricane Wilma bypassed US production facilities.

Crude prices fell nearly a dollar on both sides of the Atlantic on relief that platforms and refineries in the Gulf of Mexico had not suffered another battering like that caused by Hurricane Katrina in August. Wilma swept southern Florida yesterday, having lashed Mexico's Yucatan peninsula at the weekend but it missed key oil and gas rigs, four of which remain shut as a result of Katrina and Rita.

US light crude prices fell to $59.45 a barrel, the lowest since July 28 and 16% down from the record $70.85 struck after Katrina. In London Brent crude fell to $57.52.

The AA said pump prices were now about 93.84p a litre for unleaded, down from last month's record of 96.06p. Diesel averages 96.98p, from 98.6p. A spokeswoman said: "The ... shortage of refining capacity means that the wholesale price of petrol has not fallen as fast as crude."

Crude's sharp fall last week owed much to US data showing that demand had been dampened by recent record prices. SUV sales in the world's biggest economy have collapsed. The market was also cheered by the end of strikes at France's largest oil refinery and by Nigerian oil workers.

The Centre for Global Energy Studies said: "The easing of crude prices appears to have been driven by rising US crude oil inventories and increasing talk of 'demand destruction' in the US as a consequence of hurricanes ... and high retail oil prices."